Red and Blue formed a joint venture to acquire and sell a special type of merchandise. Red is to manage the venture and to furnish the capital. The participants are to share equally any gain or loss on the joint venture. On April 1, 2022, Blue sent Red P10,000 cash, which was all used to purchase merchandise. On April 27, one half of the merchandise was sold for P7,200 cash. Red paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit (loss) of the venture for the month of April:
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- Reyes and Santos formed a joint operation to acquire and sell a particular lot of merchandise Reyes was to manage the operation and to furnish the capital, and the operators were to share equal in any gain or loss. On June 10, 2024. Santos sent Reyes P10.000 cash, which was immediately used to purchase merchandise which cost P10,000. Reyes paid freight of P240 on the merchandise purchased. On June 24, one half merchandise was sold for P7,200 cash. Reves paid the cost of delivering merchandise to customers, which amounted to P260. No further transactions occurred on June 30, 2024. 1. The profit (loss) of the operation for the period June 10 - June 30, 2024 is: 2.On June 30, 2024 after recognizing the profit (loss) on the uncompleted operation, the account of Santos on the books of Reyes will show a debit (credit) balance of:Kara and Mia formed a joint arrangement to acquire and sell a special type of merchandise. Kara is to manage the joint arrangement and to furnish the capital. The joint operations are to share equally any gain or loss on the joint operations. On April 1,2020, Mia sent Kara P10,000 cash, which was all used to purchase merchandise, Kara paid freight of P240 on the merchandise purchased. On April 27, one half of the merchandise was sold for P7,200 cash. Kara paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit(loss) of the joint arrangement for the month of April,2020 is:Banayo and his very close fiend Buendia formed a partnership on January 1, 2009 with Banayo contributing P160,000 cash and Buendia contributing equipment with a book value of P64,000 and a fair value of P48,000, and inventory items with a book value of P24,000 and a fair value of P32,000. During 2009, Buendia made additional investment of P16,000 on April 1, and P16,000 on June 1. On September 1, he withdrew P40,000. Banayo had no additional investment nor withdrawals during the year. The average capital balance at the end of the fiscal year 2009 for Buendia
- Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement? *Your answerPedernal, Pating, and Liggayu are forming a new partnership. Pedernal is to invest cash of P100,000 and stapling equipment originally costing P120,000 but has a second-hand market value of P50,000. Pating is to invest cash of P160,000. Liggayu, whose family is engaged in selling stapling equipment, is to contribute cash of P50,000 and a brand new stapling equipment to be used by the partnership with a regular price of P120,000 but which cost their family's business P100,000. The partners agreed to share profits equally. The capital balances upon formation are:Lady and Gaga are partners sharing profits and losses in the ratio of 7:3, respectively. On October 1, 2021, they decided to liquidate the business when the account balances are Debit Credit Cash 50,000 Non-cash Assets 150,000 Liabilities 50,000 Lady, Capital 90,000 Gaga, Capital 60,000 During the same month, the non-cash assets were sold for 100,000. After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of a. 105,000 and 45,000, respectively b. 90,000 and 60,000, respectively c. 55,000 and 45,000, respectively d. 70,000 and 30,000, respectively
- Kai and her very close friend Bigan formed a partnership on January 1,2015 with Kain contributing P16,000 cash while Bigan contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2015, Bigan made additional investments of P1,600 on April 1 and P1,600 on June 1 and on September 1, he withdrew P4,000. Kai had no additional investments or withdrawals during the year. How much is Bigan's average capital balance?In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The partnership had profits of P480,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required:1. Prepare the journal entry to record the investment of both partners in the partnership.2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a. The partners agreed to share profit equally.b. The partners failed to agree on a profit-sharing arrangement.c. The partners agreed to share profit according to the ratio of their original investments.d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan…Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit? A. P 76,000 B. P 96,000 C. P 52,000 D. P 84,000
- In January 2019. Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P2,200,000 and P1.400,000, respectively. The partnership had profits of P840,000 during 2019 but was less successful during 2020, when profit was only P400,000. Required: d. The partners agreed to share profits by allowing interest of 10% on their original Investments and dividing the remainder equally The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments. and dividing the remainder equally.On January 1, 2022, A and B formed a partnership by contributing P200,000 and P180,000 respectively. On April 1, Partner A invested additional P30,000 but withdrew P48,000 on October 31. B, on the other hand, withdrew P45,000 on June 1 but invested P25,000 on September 30. The partnership's operation for the year 2022 resulted in a profit of P98,000 to be divided using the average capital balances of the partners. Determine the capital balance to be used in profit allocation for Partner B..Ranran, Sansan, and Tantan are forming a new partnership. The following are their contributions: • Ranran is to invest cash of P100,000 and stapling equipment originally costing P120,000 but has a second-had market value of P50,000. • Sansan is to invest cash of P 160,000. • Tantan, whose family is engaged in selling stapling equipment, is to contribute cash of P50,000, and a brand-new stapling equipment to be used by the partnership with a regular price of P 120,000 but which cost their family's busmess P100,000. • The partners agreed to share profits and loss equally.The capital balances upon formation are: a) Ranran - ₱220,000; Sansan - ₱160,000; Tantan - ₱220,000 b) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱170,000 c) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱220,000 d) Ranran - ₱176,666; Sansan - ₱176,666; Tantan - ₱176,668